What is NGMI in Crypto, and tips to protect yourself
The meaning of NGMI is: Not Gonna Make it. It's an acronym and popular slang term used in the crypto and NFT spaces. But what's the deeper story behind NGMI?
The meaning of NGMI is: Not Gonna Make it. It's an acronym and a popular slang term used in crypto, investing and NFT online communities to describe poor financial decision making.
Spend any significant amount of time in the crypto world, and chances are, you'll come across 'NGMI' sooner rather than later. In fact, you'll quickly realize it's just one of the many terms crypto traders use on a regular basis.
But what exactly does NGMI actually mean, and what's it all about? Let's dig a little deeper to find out.
What does NGMI mean in crypto?
Essentially, NGMI is a way to describe instances where someone or something makes a bad decision or shows poor judgment. In other words, NGMI means failure is on the horizon, most likely of the financial kind.
When the crypto community uses NGMI, it has a very negative connotation, implying a lack of intelligence and forethought.
The crypto and NFT communities often use the term "NGMI to refer to people outside the community who don't see the potential value in investing in cryptocurrencies and NFTs. As far as they're concerned, these people's failure to invest in these opportunities is nothing less than poor financial decision-making.
But NGMI can equally refer to people or organisations within the crypto and NFT worlds as well. That could be a crypto investor who offloads a cryptocurrency that's expected to appreciate in the long term or an investor who sells an NFT at a loss when others firmly believe the project is destined for long-term success. It could even be a company that launches a new cryptocurrency without any kind of unique selling point.
People sometimes also use NGMI in a self-deprecating way to bemoan a perceived poor decision on the user's part. Often as a kind of self-admonishment when sharing the experience with other people on social media. Basically, if you make bad financial decisions, then you're NGMI.
Inversely 'GMI' and 'WAGMI', meaning "gonna make it" and "we're all gonna make it" respectively, are often used to describe positive events, decisions or optimism.
Example of NGMI being used
Imagine an instance where you've made a bad decision in cryptocurrency trading (difficult to believe, we know). Perhaps you want to share with other people in a Twitter community in a vain attempt to exorcise those daemons.
It might go something like this:
Crypto and NFT influencers
NGMI is also an integral part of any well-known NFT or crypto influencer's lexicon.
For example, an NFT influencer might use it to call out some practices they want to warn their followers against, or perhaps even steer them away from investing in certain tokens.
Here are just a few things you might hear them say:
But how can you avoid falling into the NGMI trap yourself? In this next section, we'll take a look.
Eight tips to protect yourself when investing in crypto or NFTs
It's never a happy moment when you realize that you're NGMI. So, here are some tips to help make sure that never happens.
Protect yourself against scams
Crypto has its share of nefarious actors, so it pays to keep your wits about you. Look out for:
Fake crypto giveaways
Crypto giveaway scams are online posts, usually on social media, that invite users to deposit crypto to an address with the promise the sender will receive double or more back. Look out for fake Twitter profiles (including big profiles) with fake accounts flooding the comment section with positive sentiment.
Trading bot scams
In these scams, platforms draw people in by offering a very high rate of return. However, they are ponzi schemes, and once they've accumulated enough money, they ride off into the sunset.
Malicious wallet software
If you download a disreputable wallet, it's possible that there's malicious code in there that can access and steal your precious crypto. It's best to stick with tried-and-true names.
With thousands of coins, tokens and NFTs to pick from, inevitably some criminals try their luck posing as real, authentic projects. They may steal your identity or even your hard-earned money. Check out the individual team members of a project and DYOR to understand if it's likely to be legit.
Get security right
One of the easiest ways to avoid getting labelled NGMI is to take safety and security seriously. Don't make a digital copy of personal crypto details, always enable two-factor authentication, and make sure to use a different password for every crypto platform you use.
#DYOR: Do your own research
Not every coin and crypto token are created equal. Crypto enthusiasts worth their salt will do the proper research before committing to any specific cryptocurrency. Read the whitepaper, check the tokenomics, and research what other investors are saying about it (just make sure you don't take their word as gospel).
Diversify your investment
It pays to spread out risk when investing. This means making multiple different investments. That way, if one or even a couple of them tank, you won't lose everything. There's a good reason your grandma told you never to put all your eggs in one basket.
Only invest what you can afford to lose
Never, ever overstretch yourself financially. Given the inherent risks of investing, the possibility of losing everything you put in is always there. So, make sure you have plenty of capital elsewhere to carry on life as normal should the worst happen.
Take a long-term view
It's all-too-easy to get panicked into selling when prices are low. Especially in the crypto world, where volatility is a given, it can be better to resist your emotions. Instead, think of crypto as a long-term investment that will pay off over the coming months and years. That way, you are more likely to reap the rewards.
NGMI isn't the end
So, now you know what NGMI is all about and how to avoid some common crypto pitfalls when you're investing, your chances of being labeled NGMI have just plummeted. But even if at some point that NGMI finger gets pointed at you, don't worry, most of us get labeled NGMI at some point in our crypto journey.
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